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Japan says economy picking up moderately, while govt staying vigilant to risks

TOKYO (Reuters) – The Japanese government left its overall assessment of the Japanese economy unchanged in its November monthly report. Despite the modest recovery, we remain cautious about risks from the global economic slowdown and financial market volatility.

Economic report from Japan’s Cabinet Office comes after data showed last week Economy It unexpectedly fell for the first time in a year in the third quarter as slowing global growth and import costs hit consumption and business activity.

It also follows data that show: Manufacturing activities in Japan Strong inflationary pressure led to the fastest contraction in two years in November.

“The economy is recovering moderately,” the government said on Thursday.

The government will continue to be wary of future risks, citing the possibility that a global economic slowdown due to monetary tightening could hit the Japanese economy. He reiterated the need to “pay due attention” to the economic impact of inflation, supply constraints and volatility in financial and capital markets.

The country will make a record ¥6.35 trillion ($45.6 billion) currency intervention Last month, the currency plummeted against the dollar to a 32-year low, which may have prompted officials to enter the market.

He also maintains his view that personal consumption, which accounts for more than half of the Japanese economy, is recovering moderately.

Spending on services such as restaurant meals and lodging is picking up, although higher prices are weighing on consumer sentiment, the report said.

The government maintained its view that business investment was recovering thanks to strong corporate earnings, and said exports and imports were “almost flat”.

He also said factory output was showing signs of recovery, similar to last month, supported by strong demand for transportation equipment and semiconductor manufacturing equipment.

To cushion the economic blow from accelerating inflation, the government last month summarized economic stimulus measures Fiscal expenditure is 39 trillion yen.

(1 dollar = 139.2200 yen)

Reporter Kaori Kaneko

Our criteria: Thomson Reuters Trust Principles.

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